CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC Shareholders adopted resolutions regarding the Expansion Project

CPC-R Board of Directors meeting and CPC-K Extraordinary General Shareholders’ meeting were held on September 28/29 in Astana. The CPC-K Shareholders’ meeting was attended by K. Kabyldin, President of Kazmunaigaz.

The meeting agenda was focused on organizational, commercial and procedural matters related to the preparation for adoption of the Expansion Project final investment decision next December. The Shareholders have reached principal agreements on the CPC Expansion schedule, amendments to the Shareholders’ Agreement, Ship-or-Pay Agreement, Inter-Creditor Agreement as well as amendments to the Loan Agreements.

In addition, the Shareholders have reviewed various aspects of ongoing financial and business performance of CPC and adopted necessary resolutions. In particular, they approved award of a contract for major repair of CPC pipeline roadway and railroad crossings with pipe replacement in Kazakhstan.

According to the current estimates, the Expansion providing for the CPC pipeline system capacity increase to 67MMTA will be fully completed in 2014. The Expansion Project includes construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six crude oil storage tanks near Novorossiysk, third single point mooring at the CPC Marine Terminal as well as replacement of 88 km of pipeline in Kazakhstan.

CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7%) – 31%; Republic of Kazakhstan (represented by KazMunaiGaz – 19% and Kazakhstan Pipeline Ventures LLC – 1.75%) – 20.75%; Chevron Caspian Pipeline Consortium Company - 15%; LUKARCO B.V. – 12.5%; Mobil Caspian Pipeline Company – 7.5%; Rosneft-Shell Caspian Ventures Limited – 7.5%; BG Overseas Holding Limited - 2%; Eni International N.A. N.V. - 2%; and Oryx Caspian Pipeline LLC – 1.75%.